NICKEL: Despite record Q3 production, Sherritt cuts head office staff

TORONTO – Sherritt International has restructured and cut approximately 10% of its salaried workforce, excluding Ambatovy. As part of the plan the number of employees in the head office has been reduced by approximately 25% and cuts were made in other divisions. Sherritt expects to take a one-time related charge of $9 million in Q4 and save about $10 million annually.

The cuts came as the company announced record metals production in Q3 at both Moa in Cuba and Ambatovy in Madagascar. The Moa nickel-cobalt operation in which Sherritt holds 50% produced 4,614 tonnes of finished nickel and 438 tonnes of finished cobalt to the company's credit in Q3. Ambatovy, where Sherritt has a 40% interest, produced 3,743 tonnes of nickel and 327 tonnes of cobalt credited to the company.

Looking at the financial highlights for the quarter ending Sept. 30, 2014, Sherritt recorded $302.7 million in adjusted revenue (up 55%), $91.7 million in adjusted EBITDA (up 54%), and the adjusted cash flow per share reached $0.15 (up 20%).

Details of Sherritt's Q3 financial and production numbers can be found at Sherritt.com.